Neogen Chemicals down by 4% following launch of QIP; Shankesh Jewellers gains by 12% after its profits double in Q1

Company-specific news resulted in extreme movements in some stocks on Friday, September 11, despite the prevailing weakness in the overall Indian share market. 

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Neogen Chemicals declined by 4% following the launch of its QIP, while the recently listed Shankesh Jewellers saw a complete opposite movement, gaining 12% after doubling its first quarter profits. 

KEI Industries also saw some action and declined by 3%, following a target price reduction of the stock by Jefferies. 

Neogen Chemicals Falls After QIP Launch 

Neogen Chemicals shares declined 4% after the company launched its qualified institutional placement. 

The company has set the floor price for the QIP at ₹2,189.73 per share. It may offer investors a discount of up to 5% on that floor price. 

The fundraising announcement put the stock under pressure during Friday’s session. 

Shankesh Jewellers Rallies as Q1 Profit Doubles 

Shankesh Jewellers emerged as one of the stronger movers, with the stock gaining 12% after the company reported its first-quarter results. 

Standalone profit doubled year-on-year to ₹43.2 crore from ₹21.6 crore in the corresponding period. 

Revenue also recorded strong growth, rising 55.1% to ₹423.6 crore from ₹273.2 crore a year earlier. 

The improvement in both profit and revenue triggered buying interest in the stock during Friday’s trade. 

KEI Industries Drops 3% 

KEI Industries shares fell 3% after Jefferies revised its target price on the company. 

The brokerage retained its ‘Buy’ rating but lowered the target to ₹6,150 per share from ₹6,920. 

According to the report, KEI Industries shares had already corrected 21% from their peak and 16% since the company’s Q1 FY27 results. 

Broader Market Remains Under Pressure 

The stock-specific moves unfolded against a weak broader market. 

Information technology was the only sector trading higher, with its index gaining 0.4%. All other sectoral indices were in negative territory. 

Metal, PSU bank, automobile and consumer durable indices fell between 1% and 3%. Infrastructure, media, oil and gas, and pharmaceutical indices declined around 0.5% each. 

The weakness extended to the broader market, with both the Nifty Midcap and Nifty Smallcap indices falling 1.4%. 

Market breadth on the BSE was also firmly negative. Of the stocks traded at the time of the report, 820 were advancing while 2,471 were declining and 146 remained unchanged. 

Against this weak market backdrop, company-specific developments produced contrasting moves: Neogen Chemicals fell following its QIP launch, while Shankesh Jewellers rallied after reporting a doubling of quarterly profit and a 55.1% rise in revenue.